Posted on 07/13/2011 12:02:45 PM PDT by Kaslin
Those looking for price inflation can easily find it if they open their eyes and look at the much beloved BRICs, Brazil, Russia, India, and China, as opposed to where everyone is looking, which is to say the United States.
MarketWatch reports China’s June inflation rises 6.4%
Monthly data released by the National Bureau of Statistics of China showed the consumer price index for June climbed 6.4 % from the same period the year before. Many economists had expected the rise to be between 6.2% and 6.4%.Chinese Central Bank Downplays Soaring Costs
That increase compared with a 5.5% jump in May, which was itself the fastest rise in CPI since a 6.3% increase in July 2008.
China's central bank chief Friday suggested markets shouldn't over react to a large rise in year-on-year inflation for June, saying that month-on-month figures are a better gauge of prices.Nonsense From Zhou
"It's better to use month-on-month inflation (data)...seasonally adjusted and annualized," said People's Bank of China Gov. Zhou Xiaochuan.
"In China, we use the year-on-year inflation figure without seasonal adjustment: that's the problem," Zhou told a financial conference. "You always try to think about the base effect."
While the collapse of communism in the 1990s destroyed most Russians’ standard of living, something resembling a middle class began to appear again between 2000 and 2008, as real incomes doubled and oil revenues kept wages and pensions well ahead of inflation.India Hikes Rates 10 Times in 16 Months to Combat Inflation
However, since the onset of the economic crisis in 2008, real incomes have been stagnating as wages have been frozen – while inflation gallops on.
Since the onset of the economic crisis in 2008, which saw gross domestic product fall 8 per cent in 2009, wages in most sectors have been frozen, while inflation, temporarily damped by the crisis, has now picked up. In the first quarter of 2011, real wages fell 2.9 per cent, driven by higher inflation than expected.
While official inflation for the year sits at a little more than 9 per cent, many think this statistic is fudged. “I think the real inflation rate is being understated by official statistics,” says Sam Greene, a professor of political science at the Moscow-based New Economic School.
Over the past five years, official statistics show prices rising 62 per cent but most Russians feel much greater increases.
“The middle class is splitting in two,” says Mikhail Chernysh, head of the social mobility section of the Russian Academy of Sciences Institute of Sociology. “One part is in danger of falling out of the middle class, while the other part is gaining.
“Getting into the middle class is very difficult in Russia and once you are there, it is hard to stay.”
The Reserve Bank of India (RBI), the central bank, has raised interest rates for a record 10th time in 16 months, grimly continuing its efforts to choke inflation by checking money flow.Note: The above link may trigger unwanted popups.
But belt-tightening, the RBI has decided, remains one of the critical ways to tackle inflation, which rose to 9.06 % in May, up from 8.66 % in April.
"High input prices, rising finance costs and global uncertainties are adding to negative sentiments ... and a high interest rate environment will most certainly put brakes on new investments," Associated Chambers of Commerce and Industry of India president Dilip Modi told Agence France-Presse.
RBI governor Duvvuri Subbarao is unimpressed by such pleas, declaring in a statement that the immediate priority was to kill inflation, not to feed growth.
Who says America can’t export?
I wonder if those countries measure real inflation, or phony inflation that excludes energy and food, some of those things that no-one in the US ever needs to purchase.
Interesting...these are the Basket of Currencies that Soros wants to replace the dollar with...
Not surprising. Inflation's pretty wild here.
a Brazilian friend of mine went home for a visit recently and said he could not believe how expensive everything had gotten
But belt-tightening, the RBI has decided, remains one of the critical ways to tackle inflation, which rose to 9.06 % in May, up from 8.66 % in April.
Perhaps there is something wrong with the central bank theory that economic growth causes inflation, and that curbing economic growth will cure it. This is the latest example that the theory doesn't work.
Damn!!! You beat me to it. You're exactly right.
> In the News/Activism forum, on a thread titled Inflation
> Wild in BRIC Countries, blasater1960 wrote:
Perfect set-up for selling these currencies short.
That’s what Soros did in France and Russia. France fined him $100M - pocket change for him. Russia still has a warrant for his arrest. He is an international criminal.
Is that old devil still alive? He’s making Putin look feckless if he is.
I think Soros bought Putin off.
Putin has killed his enemies everywhere and anywhere in the world, with no qualms, and no fear that he will be implicated.
When accused of sending killers to dust his enemies, his response is more or less, “So what?”
The only explanation for Soros being alive is that he and Putin came to an “understanding” that probably involved a large transfer of money into Putin’s Swiss account.
Not even. Would any sane person trust rasPutin? Put money in an account for him and he would still off you if he wanted to. No, there is another reason, one that has Soros paying to accomplish something Putin wants but cannot do himself ... end the We The People Republic by bankrupting it at the hands of barry bassturd—who is too stupid to see he will be of no further use to Soros when it is done—and the commie criminal enterprise democrap party.
> Would any sane person trust rasPutin? Put money in an
> account for him and he would still off you if he wanted
> to. No, there is another reason, one that has Soros
> paying to accomplish something Putin wants but cannot do
> himself ... end the We The People Republic by bankrupting
> it at the hands of barry bassturd—who is too stupid to
> see he will be of no further use to Soros when it is done—
> and the commie criminal enterprise democrap party.
This is a very astute observation and deserves a bump.
Well stated.
My compliments.
The inflation measures in Russia, india and brazil (China I’m not sure about) has various foodstuffs and cost of energy included in their basket for calculating inflation.
A most insightful post. Thanks for the thoughts.
Thanks, Glades, but the comments, and credit for them, belong to MHGinTN. I was just quoting him to bump his astute observations.
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